Silver Stocks: This Penny Stock Became A Superstar

Aibek Burabayev - Contributor - Metals

The continued weakness in the silver price offers opportunities to buy silver stocks, which have followed the metal to the downside. This time I selected three of the top silver stocks by their P/E ratio for analysis.

Table 1. Top Silver Stocks By P/E

Image courtesy of

Top three companies are:

1. Silvercorp Metals Inc. (NYSE:SVM)
2. Coeur Mining Inc. (NYSE:CDE)
3. Silver Standard Resources Inc. (NASDAQ:SSRI)

Silver started to drop into a long lasting correction a year ago on the 4th of July, 2016. Below is a comparison chart of three stocks and silver itself to show you how they performed relative to each other. Continue reading "Silver Stocks: This Penny Stock Became A Superstar"

Gold & Silver: Time Machine

Aibek Burabayev - Contributor - Metals

The Time Machine is the dream of many (especially those who bet on sports) and I’m excited to see if we will be able to travel through time shortly as physics scientists confirmed that it is possible. In the meantime, we could profit or at least be prepared for the future using the market’s time machine.

Last week a textbook example of a “Flash Crash” occurred in the silver market when the price dropped almost 2 dollars (10%) within a minute! It’s amazing that gold was untouched by this event creating an arbitrage opportunity as all discrepancies are subject to speculative trading. That’s why I put the silver analysis first this time to show the map for a possible gold move. By the way, it is quite often that silver is the principal instrument for market movement as it has less liquidity and therefore more opportunities for market “gangsters” or “pirates” to attack it.

Chart 1. Silver Daily

Daily Silver Chart
Chart courtesy of

After silver breached the previous major low established last December at the $15.64 mark the map has changed. What was tagged as a first move up turned out to be a tiny countertrend conjunctive move within the small complex correction contoured with the red downtrend. The Flash Crash drop almost reached the downside of the red channel, which could finish that small complex correction. Continue reading "Gold & Silver: Time Machine"

The Gold Clone: Time's Up

Aibek Burabayev - Contributor - Metals

Last week time ran out for the clone of the previous consolidation in the gold chart that I posted in April. I’ve updated the chart with a snapshot of the experiment’s result.

Snapshot Of The Experiment’s Results: Good, But Not Ideal

Chart courtesy of

All experiments are some sort of magic as we have an idea in our mind and try to apply it in the real world through an uncountable series of experiments to reach the desired result. But any result is a step forward to better understand what is going on in the real world. And the many side effects can bring us something genuinely new, especially when the experiment brings you an unexpected result. Continue reading "The Gold Clone: Time's Up"

Silver Monthly: Symmetric Triangle

Aibek Burabayev - Contributor - Metals

It’s amazing how an updates’ timing can coincide with an interesting chart pattern that’s shaping up or trendline reactions. This time I spotted a Symmetric Triangle pattern as I was preparing this monthly update. I am happy to share it with you in the chart below.

Chart 1. Silver Monthly (Zoomed): Symmetric Triangle

Silver Monthly ChartChart courtesy of

The market got stuck for more than one year inside of the black Symmetric Triangle pattern. It shows that neither bulls nor bears could change the balance of the market as price volatility on the monthly chart faded and we reached the apex of the triangle where the trendlines converge. Continue reading "Silver Monthly: Symmetric Triangle"

Gold Faces Multi-Year Resistance Again

Aibek Burabayev - Contributor - Metals

Monthly charts show major price development and are crucial in determining the long-term trends. It is slow to change and I update it once the price reaches the important level or makes a breakout or reversal. The last time I updated the monthly chart was last August when the price reached the multi-year trendline resistance.

I had assumed three possible scenarios of price action and the least interesting second scenario of consolidation plan worked. I had set the margins of consolidation within the $1100-1400 range and some readers thought it was too wide, but as you can see now it played out perfectly – the actual range is $1122-1367 for the past period.

The trendline resistance falls lower and lower in the long run and now the price meets it again. That’s why added an updated monthly chart below.

Chart. Gold Monthly: Crossroads

Monthly Gold ChartChart courtesy of

This time we have the same situation as in the past year. Last July the price had tried to push through the black resistance line, but failed and there was hope that in the next month the breakup could be done and we all know what happened next. Last month the price also tried to overcome the barrier but failed. Nevertheless, the hope is still there as always in such situations. This month’s candle tells us that the price first dropped down from the open at $1267 to $1214 low and is now reversing losses and is yet to cover them all. Continue reading "Gold Faces Multi-Year Resistance Again"